Confluence FVG Finder | ProjectSyndicate

The Confluence FVG Finder indicator automatically identifies and validates high-probability, non-repainting Fair Value Gaps by scanning multiple higher timeframes for structural alignment. It filters for imbalance quality using an ATR-based threshold and normalizes zone heights to provide a quantifiable, data-driven edge for identifying institutional supply and demand areas.

Usage

The Usage section describes how the script can be used to identify high-confluence areas of interest. It is designed to work on various assets including Gold (XAUUSD), Indices (US30, NAS100), Forex, and Crypto.

• Multi-Timeframe Analysis: By default, the engine tracks the H1, H2, and H4 timeframes. Traders should use the script on a chart timeframe at or below the "Anchor" timeframe (Timeframe 1) to ensure zones render accurately.
• Confluence & Strength: The most critical metrics are the Timeframe Confluence Count and the Strength Rating (0–10). A zone confirmed by 3 timeframes with a high strength rating indicates a significant structural imbalance.
• Zone Interaction: Traders can monitor how price reacts to these zones. The script supports different mitigation modes (Touch, Full Fill, or 50% Fill) to determine when a zone is no longer active.
• Precision Entry: The embedded info labels display the exact "pips away" distance from the current price, facilitating the placement of limit orders at high-probability levels.

Details

The script utilizes a proprietary confluence engine that scans three independent higher timeframes simultaneously. Unlike standard indicators that may identify every three-candle gap, this tool employs several advanced logic layers:

• Imbalance Validation: Every gap is filtered through an ATR-based multiplier. This ensures that only significant market moves, rather than micro-gaps, are considered.
• Proximity-Based Merging: Because gaps on different timeframes rarely align to the exact pip, the engine uses a proximity tolerance. If imbalances from different timeframes are clustered within a specific price range, they are mathematically merged into a single "Confluence Zone."
• ATR-Normalized Zones: To maintain visual clarity, the script can force all merged zones to a uniform height based on ATR (e.g., 0.75x ATR). This prevents oversized gaps from distorting the chart and allows for objective analysis of zones with equal visual weight.
• Stability: Each timeframe is detected within its own data context and anchored to its formation timestamp. This ensures that zones are non-repainting and appear identical regardless of the chart timeframe being viewed.

Settings

Universal Zone Settings

• Normalize All Zone Heights: When enabled, forces all FVG zones to a consistent height for visual uniformity.
• Zone Height Method: Choose between "ATR Based" or "Fixed Percentage" to determine how the height is calculated.
• Zone Height (ATR Multiplier): Sets the height of normalized zones relative to the current ATR.
• Zone Height (% of Price): Sets the height of normalized zones as a percentage of the asset price.

FVG Detection

• Show Bullish/Bearish FVG: Toggles the visibility of the respective zones.
• Max Zones Per Side: Limits the number of active zones displayed on the chart to prevent clutter.

Multi-Timeframe Confluence

• Timeframe 1, 2, 3: Defines the three higher timeframes the engine scans for confluence.
• Minimum Timeframe Confluence: The required number of timeframes (e.g., 2 out of 3) that must align to form a Merged Zone.
• Proximity Tolerance (x ATR): The distance allowed between gaps on different timeframes for them to be merged into a single zone.

Strength Rating

• Enable Strength Rating: Toggles the 0–10 strength calculation.
• Minimum Strength Filter: Filters out zones that do not meet a minimum composite strength threshold.
• Strength Bonus Per Extra Timeframe: Adds a multiplier to the strength score for each additional timeframe that confirms the zone.

Mitigation Settings

• Mitigation Type: Determines the criteria for a zone to be considered "filled" (Touch, Full Fill, or 50% Fill).
• Show Mitigated FVG: When enabled, zones that have been hit remain on the chart but change color.

FAQ

How do I interpret the Strength Rating on the zone labels?
The Strength Rating is a 0–10 score based on the size of the initial imbalance relative to ATR and the number of confirming timeframes. A score of 8.0+ generally indicates a very high-probability structural level.

Why does a warning appear when I change my chart timeframe?
The engine uses Timeframe 1 as its "anchor." To ensure the mathematical accuracy of the zones, your current chart timeframe must be equal to or lower than the Anchor Timeframe (H1 by default).

How can I access the Confluence FVG Finder?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.